New Delhi:
Paytm E-Commerce Private limited value may soon reach to whopping $1 billion as the online retail unit is in talks to raise $200 million via an investment led by Chinese internet giant Alibaba Group.
According to a report in Livemint, this deal will confirm Paytm as Alibaba’s carrier for its e-commerce play in India.
Paytm’s parent company One97 Communications was valued at $5 billion when Mediatek invested $60 million in August-September 2016. Paytm makes up for 20% of One97’s total business.
The stake of Alibaba and its affiliate Ant Financial in Paytm will rise to 50 per cent after the next round of funding.
Paytm, which started out as a mobile payments and mobile recharge business ranks among the top three consumer Internet companies in the country.
One97 was valued at $5 billion the last time it raised about $60 million from new investor Mediatek in August-September 2016. E-commerce makes up about 20% of One97’s business.
The Online retail company is expected to launch a new mobile application and a separate website for the e-commerce business.
The upcoming website will be renamed as PaytmMall, inspired by Jack Ma’s T-mall in China. The existing Paytm app will continue to have a link to the commerce business.
One97 Communications’ existing shareholder SAIF Partners is likely to participate in the upcoming investment round as well, the people mentioned above said.
